Unilever Plc · LSE:ULVR
Unilever — Investor Presentation (December 2001)
45 slides from Unilever's investor presentation, Dec 4, 2001
Slide 1: 40 Years of Global Transformation
U 40 Years of Global Transformation NYSE 40th anniversary Unilever sharelisting New York, 4 December 2001
Slide 2: Forward looking statements
This presentation contains forward looking statements which reflect management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential
Slide 3: Unilever Origins
UNILEVER ORIGINS z Formed in 1929 z Business merger
Slide 4: Unilever Origins
UNILEVER ORIGINS “To make cleanliness commonplace; To lessen work for women; To foster health and contribute to personal attractiveness that life may be more enjoyable and rewarding for the people who use our products”. William Hesketh Lever (1890)
Slide 5: Strategic Eras in Unilever
STRATEGIC ERAS IN UNILEVER 1960s and 1970s 1980s and 1990s Conglomerate Strategy Core Strategy 12% 11% operating margin bei 10% 9% 8% 7% 6% 5% 4% 61 66 71 76 81 86 91 96 underlying growth 6% * 61 - 64: estimates 4% 2% 0% 61 66 71 76 81 86 91 96
Slide 6: Core Strategy
CORE STRATEGY z Focus on industries / categories z Build Personal Care business z Increase scale in North America z Grow business in Developing & Emerging markets
Slide 7: Core Strategy Focus
CORE STRATEGY FOCUS Focus on Focus on on Focus categories industries categories down to 13 down to 3 down to 13
Slide 8: Portfolio Management
PORTFOLIO MANAGEMENT 1984 - 1999 Number Acquisition: 453 transactions, $12.4bn of Deals Divestment: 281 transactions, $10.4bn 60 50 40 30 20 10 0 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 Acquisitions Divestments
Slide 9: Activity Division Sales & Profit
ACTIVITY DIVISION SALES & PROFIT 100% 80% 60% Sales 40% 20% Others 0% Personal Care 1965 1970 1975 1980 1985 1990 1995 2000 Home Care 100% Foods 80% 60% Operating profit 40% 20% 0% 1965 1970 1975 1980 1985 1990 1995 2000
Slide 10: Geographic Division Sales & Profit
GEOGRAPHIC DIVISION SALES & PROFIT 100% 80% 60% Sales 40% 20% Rest of world 0% 1965 1970 1975 1980 1985 1990 1995 2000 N. America 100% Europe 80% 60% Operating profit 40% 20% 0% 1965 1970 1975 1980 1985 1990 1995 2000
Slide 11: Share Price Development
SHARE PRICE DEVELOPMENT Index 1984 = 100 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 0 ' 84 ' 85 ' 86 ' 87 ' 88 ' 89 ' 90 ' 91 ' 92 ' 93 ' 94 ' 95 ' 96 ' 97 ' 98 ' 99 Unilever NV NY S&P 500 Composit e
Slide 12: Achievements Core Strategy
ACHIEVEMENTS CORE STRATEGY z Coherent brand-based business z Build Personal Care business z Significant presence in North America and D&E z Operating margin doubled z Cash-flow trebled …. but ….
Slide 13: Unilever Value Creation
UNILEVER VALUE CREATION Sales Operating Cost of Capital Growth Margin Capital Efficiency
Slide 14: Path to Growth: Components
PATH TO GROWTH: COMPONENTS z Brand focus z Modernisation programme z Acquisitions “make a good plan better” z Underperforming businesses z Enterprise culture
Slide 15: Path to Growth: Focus
PATH TO GROWTH: FOCUS Focus on Focus on Focus on industries categories leading brands down to 3 down to 13 down to 400
Slide 16: Path to Growth Objectives by 2001
PATH TO GROWTH OBJECTIVES BY 2001 Growth 5-6% p.a. Operating margin >16% EPS beia growth Low double-digit Investments €5.0 billion Restructuring savings €1.5 billion Buying savings €1.6 billion Bestfoods restructuring €1.2 billion Synergy €0.8 billion
Slide 17: Events Calendar
EVENTS CALENDAR Feb 22 Path to Growth Mar 03 Ariba Apr 12 Ben & Jerry’s, Slim•Fast Jun 06 Bestfoods Jul 06 Transora Jul 11 Bakery Europe Aug 04 Changes top structure Oct 31 Elizabeth Arden Jan 01 Start new organisation Jan 29 European brands remedies Feb 19 Bestfoods Baking Jun 19 Announcement Unipa
Slide 18: Sales Growth Leading Brands
SALES GROWTH LEADING BRANDS % excl. A&D Q1 Q2 Q3 Q4 2000 Q1 Q2 Q3 HPC 4.8 3.4 6.8 6.2 5.3 7.2 7.5 4.7 Foods 0.1 3.0 0.1 3.0 1.9 3.2 2.4 6.0 Leading Brands 2.9 3.2 3.8 4.9 3.8 5.4 5.1 5.3 Other (5.4) Total 0.9 1.1 1.4 2.6 1.8 4.5 4.0 4.3 Prior to Q2’01: Top 400 excl. BFO. From Q2’01: New leading bran
Slide 19: Operating Margin BEIA 12 Month Rolling
OPERATING MARGIN BEIA 12 MONTH ROLLING % 97: 9.9% 98: 10.6% 99: 11.2% 00: 12.0% YTD: 13.8% 14 12 10 8 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 20: Share Price Development
SHARE PRICE DEVELOPMENT 2200 Index 1984 = 100 2000 1800 1600 1400 1200 1000 800 600 400 200 0 ' 84 ' 84 ' 85 ' 86 ' 87 ' 88 ' 89 ' 90 ' 91 ' 92 ' 93 ' 94 ' 95 ' 95 ' 96 ' 97 ' 98 ' 99 ' 00 ' 01 Unilever NV NY S&P 500 Composit e
Slide 21: What Makes Unilever Unique?
U WHAT MAKES UNILEVER UNIQUE?
Slide 22: What Makes Unilever Unique? Its brands
WHAT MAKES UNILEVER UNIQUE? Its brands Its global presence Its people
Slide 23: What Makes Unilever Unique? Its brands
WHAT MAKES UNILEVER UNIQUE? Its brands Its global presence Its people
Slide 24: Brand Focus: From 1600 to 400 brands
BRAND FOCUS From 1600 to 400 brands Consumer Sales Total Sales global brands local jewels consumer brands 100% 95% other sales 5% total sales 100%
Slide 25: Brand Focus
BRAND FOCUS
Slide 26: New Geographies: Global Roll-out
NEW GEOGRAPHIES Global Roll-out In 1961 US Canada In 2001 60+ countries
Slide 27: New Categories and Innovation
NEW CATEGORIES AND INNOVATION Dove Nutrium Dove Deo Dove Hair Care Dove Facial Cloths
Slide 28: Dove Sales
Sales Japan launch US$ 1200 Europe: ultra body wash 1000 Deo rollout 800 US: shower liquids and sensitive skin bar 600 400 World-wide rollout began 200 0 55 60 65 70 75 80 85 90 95 00
Slide 29: Sales US$
Sales US$ 1000 900 +26.0% 800 700 +20.3% 600 +21.2% 500 400 300 200 100 0 1998 1999 2000 2001* Year * Estimate
Slide 30: Paint the World Yellow with Lipton
Paint the World Yellow with Lipton
Slide 31: Innovation
INNOVATION Lipton Cold Brew Tea Bags Lipton Pyramid Tea Bags
Slide 32: Suave
3 uave CREAM minae
Slide 33: Hair Care, Hand & Body Lotion
1937 1977 1978 1992 1995 2001 Hair Care Hand & Body Anti Facial Care Body Wash Bar Soap Lotion Perspirant
Slide 34: Sales US$
Sales US$ 700 launch of bar soap 600 500 launch of body wash 400 launch of facial care 300 200 100 0 89 90 91 92 93 94 95 96 97 98 99 00 01
Slide 35: What Makes Unilever Unique? Its global presence
WHAT MAKES UNILEVER UNIQUE? Its brands Its global presence Its people
Slide 36: A Multi-Local Multinational
A MULTI-LOCAL MULTINATIONAL Europe: 42% North America: 24% Asia Pacific: 17% Latin America: 11% Africa, Middle-East: 5% Operating companies Sales activities
Slide 37: Unilever People
UNILEVER PEOPLE AT
Slide 38: Unilever Mexico and the Tequila Crisis
UNILEVER MEXICO AND THE TEQUILA CRISIS
Slide 39: Mexico - What We Did
MEXICO - WHAT WE DID z Crisis program z Focus on: – personal care – spread and ice cream (acquisitions) – gross margin z Divest – animal feed – meat – chemicals
Slide 40: The Results - Mexico
THE RESULTS - MEXICO 900 Sales US$ 800 700 600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 Gross Margin (Index = 1995) 250 213 200 175 151 153 150 120 100 100 50 1995 1996 1997 1998 1999 2000
Slide 41: Unilever in South East Asia
UNILEVER IN SOUTH EAST ASIA
Slide 42: Performance of South East Asia
PERFORMANCE OF SOUTH EAST ASIA 1997 - 1999 120 25.0% 100 20.0% 80 15.0% 10.0% 60 5.0% 40 0.0% 20 -5.0% 0 -10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 97 98 99 00 Gross Margin Indexed Underlying Volume Growth
Slide 43: South East Asia - Indonesia
SOUTH EAST ASIA - INDONESIA US$ US$ 100 800 90 700 Net Earnings 80 Sales 600 70 500 60 400 50 40 300 30 200 20 100 10 0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00
Slide 44: Our People in South East Asia
OUR PEOPLE IN SOUTH EAST ASIA
Slide 45: Global leverage, Local management, Brands
UNILEVER z Global leverage z Local management z Brands